Critical Contrast: SkyWest (NASDAQ:SKYW) versus Singapore Airlines (OTCMKTS:SINGY)

SkyWest (NASDAQ:SKYW) and Singapore Airlines (OTCMKTS:SINGY) are both industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, earnings, analyst recommendations, institutional ownership and valuation.

Dividends

SkyWest pays an annual dividend of $0.56 per share and has a dividend yield of 0.5%. Singapore Airlines pays an annual dividend of $0.40 per share and has a dividend yield of 3.4%. SkyWest pays out 5.6% of its earnings in the form of a dividend. Singapore Airlines pays out 117.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a summary of current ratings and price targets for SkyWest and Singapore Airlines, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SkyWest	0	4	1	1	2.50
Singapore Airlines	0	1	0	0	2.00

SkyWest presently has a consensus target price of $119.40, suggesting a potential upside of 4.22%. Given SkyWest’s stronger consensus rating and higher possible upside, equities research analysts clearly believe SkyWest is more favorable than Singapore Airlines.

Profitability

This table compares SkyWest and Singapore Airlines’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SkyWest	9.78%	14.58%	5.42%
Singapore Airlines	N/A	N/A	N/A

Valuation and Earnings

This table compares SkyWest and Singapore Airlines”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SkyWest	$4.19 billion	1.06	$428.33 million	$10.06	11.39
Singapore Airlines	N/A	N/A	N/A	$0.34	34.55

SkyWest has higher revenue and earnings than Singapore Airlines. SkyWest is trading at a lower price-to-earnings ratio than Singapore Airlines, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

81.3% of SkyWest shares are held by institutional investors. Comparatively, 0.0% of Singapore Airlines shares are held by institutional investors. 1.5% of SkyWest shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

SkyWest beats Singapore Airlines on 12 of the 14 factors compared between the two stocks.

About SkyWest

SkyWest, Inc. is the holding company for two scheduled passenger airline operations and an aircraft leasing company. SkyWest’s airline companies provide commercial air service in cities throughout North America with nearly 3,000 daily flights carrying more than 53 million passengers annually. SkyWest Airlines operates through partnerships with United Airlines, Delta Air Lines, American Airlines and Alaska Airlines. ExpressJet Airlines operates through partnerships with United Airlines, Delta Air Lines and American Airlines. Based in St. George, Utah, SkyWest employs nearly 17,000 employees.

About Singapore Airlines

Singapore Airlines Limited, together with subsidiaries, provides passenger and cargo air transportation services under the Singapore Airlines and Scoot brands in East Asia, the Americas, Europe, Southwest Pacific, West Asia, and Africa. It operates through The Full-Service Carrier, The Low-Cost Carrier, and Engineering Services segments. The company also offers engineering services, pilot training services, air charters, and tour wholesaling and related services; and refurbishes aircraft galleys. In addition, it provides aircraft maintenance services, including technical and non-technical handling at the airport; maintenance, repair, and overhaul of aircraft and cabin components/systems; repair and overhaul of hydromechanical equipment; aviation insurance; and airframe maintenance and overhaul services, as well as manufactures aircraft cabin parts and tooling for the aerospace industry. Further, the company offers marketing and supporting portal services for the air cargo industry; and reservation service systems, as well as travel-related retail services. Additionally, it provides travel booking and related services through an online portal. As of March 31, 2023, the company operated a fleet of 195 aircrafts, including 188 passenger aircrafts and seven freighters. Singapore Airlines Limited was founded in 1947 and is based in Singapore.